U.S. Census Bureau's monthly new residential construction report

U.S. New-Home Construction Falls 6.8% in July to Pandemic Lows

Aug 16, 2024, 12:44 PM

U.S. new-home construction fell sharply in July, reaching its lowest level since the COVID-19 pandemic. The decline was driven by a significant drop in single-family housing starts, which fell 14.1% from June, marking the steepest one-month decline since April 2020. The seasonally adjusted annual rate for single-family starts dropped to 851,000, a 15% decrease from the previous year. Overall, housing starts plummeted by 6.8%, with single-family home starts dropping to 982,000, the first sub-million figure since October. Additionally, housing permits decreased by 4%, and housing completions also saw a downturn. The housing market is facing challenges due to higher mortgage rates and elevated house prices, which are keeping potential buyers on the sidelines and leading to high inventory levels.